November 26 2022 3:32 PM E-paper Subscribe Sign in My Account Sign out

Clothing merchants ask for deferral on bank payments

Clothing clothes
A view of a clothing store in Amman. (Photo: Ameer Khalifeh/Jordan News)
AMMAN — President of the Textile and Readymade Clothes Syndicate Sultan Allan called on the government and the Central Bank of Jordan to postpone bank installments on individuals and commercial entities to allow for liquidity to flow in the market.اضافة اعلان

He told Jordan News that the winter season brings “additional burdens” on Jordanian families, due to prioritizing spending to fuel for heating households.

“Fuel becomes a priority, and its rising price negatively affects the commercial movement, and contributes to a decline in economic activity,” he said.

Allan explained that it is necessary to postpone loan installments due from citizens, noting that this may be the most appropriate move in the prevailing financial crunch. “Markets are witnessing stagnation, and weakness in people’s purchasing power,” he said.

He explained that the high sales tax and interest rates contribute to swelling inflation, which is envisaged to reach 6 percent by yearend.

He said the previous decisions to postpone installments proved that such a step “contributes to moving commercial traffic, and reviving the various economic sectors”.

He expressed hope that there will be a comprehensive review of the matter, in addition to reconsidering the sales tax, which will contribute to reducing prices.

Munir Deyye, a former ‏president of the Textile Readymade Clothes Syndicate, said he opposed a deferment because citizens will end up paying dearly in interest rates. “We should not think twice because postponed payment will result in higher interests,” he said.

He explained that the solution lies in “reducing the sales tax to increase the purchasing power, and raise the salaries to commensurate with the high rate of inflation”.

In previous years, he said, “we called for postponing installments, but it is no longer appropriate these days, especially since during the COVID-19 pandemic period, loans were postponed and the burdens on the citizen increased, due to the increase in interest on loans”.

He explained that the purchasing power is clearly declining as a result of the high cost of living and the increased borrowing. He noted that the purchasing culture of people has changed, given that consumers are relying on buying only their necessities.

Naeem Ezz, a clothing merchant in Zarqa, told Jordan News that the sector is witnessing “a significant decline in the demand over clothing”.

He called on the government to postpone loans on citizens to encourage them to buy clothes.

“The competition between merchants has increased, and the good are in stock from the last winter season,” he said. “This is a negative indication and has serious repercussions on the sector.”


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